Archives for 2020

Consumers are continuing to turn online for purchases, and speed is a critical factor in helping retailers capture e-commerce market share. Retailers are decentralizing their distribution and fulfillment networks to bring inventory closer to consumers, which is changing the average length of haul in the trucking industry and the equipment used to make deliveries.

<p>Consumers spent $601.75 billion online with U.S. merchants in 2019, up 14.9% from $523.64 billion the prior year, the U.S. Department of Commerce reported. That was a higher growth rate than 2018 when online sales reported by the Commerce Department rose 13.6% year over year. What's more, from 1999-2017, e-commerce sales increased from less than 1% of total U.S. retail sales to more than 9%, reflecting a 3,000% increase in e-commerce sales, according to a study by the American Transportation Research Institute. </p><p>As e-commerce and business-to-consumer shipments grow, freight is becoming more dispersed, and inventory is moving closer to the points of consumption, so it is positioned for a quick response. As a result, the trucking economy is shifting to more regional and less long-haul deliveries, said Bob Costello, chief economist for American Trucking Associations. The average miles driven decreased to 505 in 2019 from 800 per day in 2000, he said. </p><p>In the <em>Impacts of E-Commerce on the Trucking Industry</em> report, the American Transportation Research Institute found that average trip lengths decreased by 37% between 2000 and 2017, while urban vehicle miles traveled have increased for much of this time. ATRI said this has changed equipment requirements. Registrations for single-unit trucks grew by 7.8% between 2007 and 2016 compared to 4.4% growth in combination truck registrations. Additionally, "Last Mile Fulfillment Centers" represented 73% of the industrial real estate market in 2017, a 15-percentage point increase from the previous year, according to the study. </p><p>During COVID-19, e-commerce surged, which could create additional changes in shopping habits and transportation needs. A study by Emarsys reported that online retail growth year-over-year increased 118% in the week leading up to May 3 as consumers stayed home. A survey by Morning Consult taken between April 7 and April 9 found that 24% of the 2,200 respondents said they wouldn't feel comfortable shopping in a mall for more than six months. </p><p>Penske provides a range of resources to meet shifting transportation and equipment needs, including <a href="https://www.pensketruckrental.com/commercial-truck-rental/commercial-trucks/light-duty-trucks/" target="_blank">light-</a>, <a href="https://www.pensketruckrental.com/commercial-truck-rental/commercial-trucks/medium-duty-trucks/" target="_blank">medium-</a> and <a href="https://www.pensketruckrental.com/commercial-truck-rental/commercial-trucks/heavy-duty-trucks/" target="_blank">heavy-duty rental trucks</a> and <a href="https://www.pensketruckleasing.com/" target="_blank">leases</a> to help companies meet new consumer demands. <a href="https://www.penskelogistics.com/solutions/warehousing-and-distribution/network-design/" target="_blank">Penske Logistics</a> also has invested heavily in its e-commerce e-fulfillment solutions to help its customers ensure the visibility and speed consumers expect. </p><p>As we all continue to live and work in these unprecedented times, businesses must change and adapt quickly. Penske has been updating our processes and shifting gears to offer safe, timely service, no matter what you need. <a href="https://www.gopenske.com/hereforyou/" target="_self">We're here and ready to help</a>.</p>

Penske Vehicle Services, a Penske Logistics subsidiary headquartered in Troy, Michigan, is the recipient of a $28,000 COVID-19 Mobility Solutions Grant from PlanetM, the mobility initiative of the Michigan Economic Development Corporation.

<p>The grant has allowed Penske Vehicle Services to begin production of vehicle occupant safety partitions, which are portable, clear vinyl barriers designed to increase social distancing between front seat and back seat occupants of passenger vehicles. </p><p>Penske Vehicle Services is currently constructing partitions for both the city of Detroit and a leading ride-sharing service. They are ready to scale operations to answer the global demand.</p><p>Jill Lajdziak, Penske Vehicle Services president &amp; CEO stated: "We are very pleased to receive the support of PlanetM and MEDC. This grant represents a win-win for the community and for our company. This is a safe, efficient and scalable solution to further promote the health and safety of both the driver and its passengers. It will help protect vulnerable members of the community, who rely on car transportation to shuttle back and forth between COVID-19 testing sites and for other related family needs. Our company has recalled a handful of furloughed associates to begin building the partitions. </p><p>"While the partitions do not seal off the front and back seat, they are designed to provide an additional social distancing comfort buffer for drivers and passengers akin to what you might experience in a retail store setting with a cashier," added Lajdziak. </p><p>Penske Vehicle Services is a leading provider in customized solutions. Services include vehicle lifecycle management, assembly &amp; mechanical services, production paint, mobility services and vehicle event support.</p><p>PlanetM is a partnership of Michigan mobility organizations, communities, educational institutions, research and development, and government agencies working together to develop and deploy the mobility technologies driving the future. </p><p style="text-align: right;"><em>By "Move Ahead" Staff</em></p>

No matter the size of your business, supply chain networks can change quickly, and you must be able to react just as fast. Time-sensitive deliveries, lean supply chains, increased demand uncertainties and shorter product lifecycles all necessitate the ability to adjust operations when change arises. Having an agile supply chain can give you a strategic advantage over your competition and allow you to handle disruptions or take advantage of new opportunities.

<p>Here are three scenarios where the ability to address rapid change is critical:</p><h2>Unexpected Changes to Consumer Demand</h2><p>Sometimes it is hard to forecast what consumers will want or when they will want it. Most recently, the global pandemic created a 124% increase in toilet paper sales and a 377% increase in packaged good sales year-over-year in March in the U.S., according to Nielsen. Severe weather, such as a hurricane, can also cause a run-up in demand as consumers stock up. </p><p>Even a chicken sandwich that goes viral or a hot toy that takes off at Christmas can leave shippers scrambling to ramp up production as well as transportation capacity. </p><h2>Seasonal Spikes</h2><p>Some industries have expected, distinctive peaks and can plan ahead. Grocers anticipate an increase in purchases around holidays, particularly Thanksgiving, Christmas and Memorial Day. Home improvement stores know that spring and summer tend to be busier. If you know you have seasonal spikes coming, preparing in advance can help you ebb and flow seamlessly with shifts in demand. </p><h2>Network Disruptions</h2><p>Natural disasters, factory shutdowns, port closures or even a supplier failure can cause companies to seek out alternative suppliers, which can create dramatic shifts in their transportation needs. If this happens to you, you may experience longer lengths of haul, need to find capacity in new routes or regions or seek out a new mode. You could also experience different equipment needs, transitioning to a larger or smaller piece of equipment depending on capacity requirements. </p><h2>How Penske Can Help</h2><p>Penske has several options to help you flex quickly with market transitions, including <a href="https://www.pensketruckrental.com/commercial-truck-rental/" target="_blank">commercial rental trucks</a>, <a href="https://www.pensketruckleasing.com/" target="_blank">truck leases</a> (including some short-term options), <a href="https://www.penskelogistics.com/solutions/transportation-services/dedicated-contract-carriage/" target="_blank">logistics services</a> and <a href="https://www.penskeusedtrucks.com/" target="_blank">used trucks</a>. Penske's team of experts can also help you if you are suddenly faced with a crisis or opportunity, and they assist in get proactively planning, so you're ready before the next surge or shift hits.</p><p>Penske has been updating our processes and shifting gears to offer safe, timely service, no matter what you need. <a href="https://www.gopenske.com/hereforyou/" target="_self">We're here and ready to help</a>.</p>

The time has once again arrived and we are asking for your support. Voting is now open for the Top 10 3PL Excellence Awards. Each year, in its July issue, Inbound Logistics magazine publishes a comprehensive resource on third-party logistics and the outsourced logistics market.

It is more economical to make the move to your new home in true do-it-yourself fashion. These quick tips from Penske Truck Rental can help ensure that your move is smooth and easy.

<ul class="ee-ul"><li><strong>Reserve Early.</strong> Book your rental truck at least two weeks in advance.</li><li><span></span><strong>Select Smart.</strong> A 12- or 16-foot truck is ideal for moving a few large items or the contents of a small condo or apartment. There are also 26-foot trucks for rent. <a href="https://www.pensketruckrental.com/moving-trucks/" target="_blank">Click here</a> to select the right vehicle for your move</li><li><span></span><strong>Use Accessories. </strong><a href="https://www.pensketruckrental.com/supplies-and-services/boxes-and-supplies/" target="_blank">Boxes, bubble wrap, moving blankets and hand trucks</a> are essential moving tools.</li><li><span></span><strong>Pack Wisely.</strong> Load your heaviest items first. Avoid injury by always bending your knees and lifting with your legs.</li><li><strong>Mark Boxes. </strong>Label as you pack. It makes it easier to put the boxes in the right room while unloading.</li><li><strong>Get Oriented.</strong> Ask the truck rental associate to walk you through the features. It should be a clean and well-maintained vehicle.</li><li><strong>Getting Insured.</strong> Most car insurance policies do not provide coverage for moving truck rentals. Check with your insurance company. Penske can provide you with <a href="https://www.pensketruckrental.com/renting-from-penske/coverage/" target="_blank">peace of mind</a>.</li><li><span></span><strong>Think Safety.</strong> Trucks are taller, wider, heavier and require more stopping distance than cars. Pick up your truck early. Practice driving around your neighborhood or in an empty parking lot. Take precautions when the truck is loaded. Beware of low-hanging branches, overhangs and when cornering. Park in well-lit areas. Padlock the rear door. Penske Truck Rental has 24/7 emergency roadside assistance and optional protection plans.</li></ul><p>A little preparation goes a long way to ensure an easy move. Get more moving tips at <a href="http://www.pensketruckrental.com/" target="_blank">pensketruckrental.com</a>. Save when you make a one-way <a href="https://www.pensketruckrental.com/quote/#/start.html" target="_blank">reservation online</a>. <a href="https://www.pensketruckrental.com/discounts/" target="_blank">Click here</a> to learn about additional ways to save when moving with Penske. </p><p style="text-align: right;"><em>By "Move Ahead" Staff</em></p>

As businesses adjust to new demands in their daily operations and supply chains, Penske Truck Leasing and Penske Logistics can help with a variety of solutions to meet your fleet and logistics needs including: rental trucks, leases, used trucks and logistics services.

<h2>Establishing New Routes </h2><p>The current environment may bring significant changes to existing routes. Channels may change as companies try to adjust business operations, such as restaurant suppliers shifting to the grocery channel, or because they are seeking out new suppliers to diversify their supplier base or because some suppliers may have left the market. </p><p>The average length of haul may also be changing. A study by the American Transportation Research Institute found that during COVID-19, local trips under 100 miles increased by more than 100 percent. Companies of all sizes are accelerating their shifts to local delivery methods and ecommerce fulfillment.</p><p>All of these adjustments could mean that different types of fleet equipment can better meet a company's requirements. Penske offers commercial rentals that range from light-duty trucks to tractors as well as used medium- and heavy-duty equipment to help meet the varied needs of its customers. </p><p>Penske Logistics can offer dedicated transportation solutions to suit its customers' needs. Penske Logistics can also provide a high-level review of its customers' shipments and run specific "what-if" scenarios to help its customers optimize their networks and determine the most efficient routes as part of a restart. </p><h2>Testing New Markets</h2><p>Penske's array of resources, such as freight brokerage, shared warehouse space and the truck rental, can help customers pursue and test opportunities in new markets before making long-term investments. Because these solutions allow business to gear up quickly without a large financial commitment, they can quickly and easily test opportunities, like expanding into new regions or taking on additional products. Penske brings access to equipment, facilities and resources, which can remove the barriers.</p><p>Penske has entire product lines geared around the sudden needs of its customers and a flexible supply chain, which also gives companies greater ability to keep their costs variable.</p><h2>Examining Existing Capacity</h2><p>As supply chains come back online, companies will want to examine their transportation networks and the carriers they've used in the past. The lack of cash flow some fleets are experiencing is going to affect the carrier base, and there could be several small carrier bankruptcies or carriers that can't restart because of the disruptions they've experienced. If possible, companies can do a financial analysis of their carriers and set up meetings to have frank discussions. There are ways Penske Logistics can help facilitate this type of deep dive and the appropriate conversations.</p><h2>Adding Capacity </h2><p>Whether shippers are responding to a seasonal or temporary surge or reacting to new, long-term business demands, Penske has several resources companies can use to add capacity.</p><p>For those operating a private fleet, Penske Truck Leasing's rental trucks and full-service leasing and maintenance solutions allow them to ramp up and down as the market shifts. Penske also has a wide selection of used trucks, tractors and trailers to fit customer needs. </p><p>Through Penske Logistics, shippers can also access a large pool of trucking carriers, and leverage them quickly to take advantage of new opportunities or help mitigate supply disruptions. </p><p>In addition, outsourcing transportation to third-party logistics providers like Penske enables companies to control costs and while focusing on their core business needs. </p><h2>For Customers</h2><p>As we all continue to live and work in these unprecedented times, businesses must change and adapt quickly. Penske has been updating our processes and shifting gears to offer safe, timely service, no matter what you need. <a href="https://www.gopenske.com/hereforyou/" target="_blank">We're here and ready to help</a>.</p>

As one of North America's largest commercial vehicle resellers, Penske sells more than 30,000 used trucks each year. The company's reputation for quality equipment and detailed fleet maintenance helps drive online sales with many buyers purchasing equipment sight unseen.

<p>"We are offering a great inventory at great prices through the end of June," explained Jack Mitchell, Penske's senior vice president of vehicle remarketing.</p><p>There are three easy ways to shop for used trucks today. Visit <a href="http://www.PenskeUsedTrucks.com" target="_blank">www.PenskeUsedTrucks.com</a>, follow daily deals on Twitter, <a href="https://twitter.com/penskeusedtruck" target="_blank">@PenskeUsedTruck</a>, or call 866-309-1962 to speak with a Penske representative. </p><p><a href="https://www.penskeusedtrucks.com/current-deals" target="_blank">Click here for current deals</a>*, which include: </p> <ul class="ee-ul"> <li>Manager's specials, priced for most budgets that offer up to 25% off list pricing</li> <li>Cash off or down payment match assistance</li> <li>Saving up to $10,000 on select used day cab and sleeper tractors</li> <li>Receiving a discount of up to $4,000 on select light-duty and medium-duty box trucks</li> <li>Sale prices on trailers: $2,500 on select used trailers and $5,000 on used refrigerator trailers </li> <li>Military discounts are also available</li> <li>Financing and warranties are also available</li> </ul> <p>Last month, Penske rolled out a new and improved version of <a href="https://www.penskeusedtrucks.com/" target="_blank">PenskeUsedTrucks.com</a>. The upgraded website includes an enhanced online experience featuring responsive, adaptive design using a state-of-the-art digital platform that makes shopping, buying and financing a used truck online easy.</p><p><a href="https://www.penskeusedtrucks.com/" target="_blank">Penske Used Trucks</a> is a business unit of Penske Truck Leasing, is a leading seller of high-quality late-model used commercial trucks to retail, wholesale, used truck dealers, and corporate truck fleet buyers. Penske sells used sleeper and day cab semi-tractors, straight trucks, flatbeds, refrigerated vans, trailers and more. Penske sells the top brands of light-duty, medium-duty and heavy-duty commercial vehicles including: Ford, GMC, Hino, Isuzu, Freightliner, International, and Volvo.</p><p><em>* Certain terms and conditions apply. Visit <a href="https://www.penskeusedtrucks.com/" target="_blank">PenskeUsedTrucks.com</a> for details.</em></p><p style="text-align: right;"><em>By "Move Ahead" Staff </em></p>

With just a month before the start of the 2020 Atlantic Hurricane Season, the spotlight is on preparation. Take steps now to help keep yourself and your property safe.

<p>The Atlantic hurricane season begins on June 1 and ends on Nov. 30, with the majority of the storms occurring between mid-August and mid-October.</p><p><a href="https://www.ready.gov/hurricane-toolkit" target="_blank">National Hurricane Preparedness Week</a>, from May 3 to 9, is a chance for you to review important safety information on what to do before, during and after a storm hits.</p><p>Hurricanes can cause storm surges, high winds and flooding. It is important that you and your business have a plan in place in case your area is affected. </p><p>Forecasters predict this year's season will be <a href="https://www.cnn.com/2020/04/02/weather/2020-atlantic-hurricane-season/index.html" target="_blank">above average</a> with 16 named storms, of which eight are expected to reach hurricane status. Four of the storms are expected to reach major hurricane strength.</p><p><a href="https://www.usatoday.com/story/news/nation/2019/11/27/hurricane-dorian-hurricane-season-comes-to-an-end/4317920002/" target="_blank">In 2019</a>, there were 18 named storms, including six hurricanes. Three storms made landfall in the U.S.: Barry, Imelda and Nestor. The season's most destructive storm was Dorian, which struck the Bahamas, killing more than 60 people and causing several billion dollars in damage.</p><h2>Preparation is Key</h2><p>Penske offers the following advice to consumers and business customers on what to do before a storm arrives:</p> <ul class="ee-ul"> <li>Make safety your number one priority.</li> <li>Top off your truck fuel tanks.</li> <li>Move trucks to higher ground if in a flood-prone area.</li> <li>Stay tuned to local news stations for weather reports.</li> <li>Adhere to all travel, road advisories and restrictions.</li> <li>Delay travel into impacted areas when possible.</li> <li>Know your evacuation routes and have a plan.</li> </ul> <h2>Important Penske Information</h2><p>Contact us if you need assistance with your lease or rental units before or after the storm:</p> <ul class="ee-ul"> <li><a href="https://www.gopenske.com/locations/" target="_self">Penske Location and Fuel Finder Tool</a></li> <li>24/7 Roadside Assistance: 1-800-526-0798</li> <li>Consumer Truck Rental Reservations: 1-888-996-5415</li> <li>Commercial Truck Rental Reservations: 1-800-736-7531</li> </ul> <h2>Penske Facilities Questions</h2><p>Penske takes steps to ensure continued service, but there are times when delays and closures may be necessary due to travel restrictions, weather conditions, power outages or a state of emergency.</p><p>Please call our 24/7 Roadside Assistance team at 1-800-526-0798 to confirm the open or closed status of a Penske facility.</p><h2>Additional Helpful Resources</h2> <ul class="ee-ul"> <li><a href="https://www.fhwa.dot.gov/trafficinfo/" target="_blank">U.S. DOT National Traffic and Road Closures and Advisories by State</a></li> <li><a href="https://www.fema.gov/" target="_blank">Federal Emergency Management Association (FEMA)</a></li> <li><a href="https://www.fema.gov/blog" target="_blank">FEMA Blog – Emergency Updates and Preparedness</a></li> <li><a href="https://www.ready.gov/hurricanes" target="_blank">Ready.gov – Hurricane Preparedness</a></li> <li><a href="http://www.nhc.noaa.gov/" target="_blank">National Hurricane Center Storm Updates</a></li> <li><a href="http://www.redcross.org/get-help/prepare-for-emergencies/types-of-emergencies/hurricane" target="_blank">American Red Cross Hurricane Tips</a></li> </ul> <p style="text-align: right;"><em>By "Move Ahead" Staff</em></p>

COVID-19 has stressed the supply chain, exposed vulnerabilities, and provided valuable insights into the role a trusted supply chain partner can play during times of crisis. Those within Penske's dedicated contract carriage division have helped customers smooth out the supply chain and are working with them on the next phase as the country reopens and supply chains are affected once again.

<p>"Because of COVID-19, we saw supply chain needs for essential businesses surge while those of non-essential businesses dropped off. As a dedicated provider that has a diversified customer base, we have options during these times and can flex both up and down to meet our customers' needs," said Tom Scollard, vice president of dedicated contract carriage for Penske Logistics. </p><h2> Ramping Up and Down</h2><p>Having a dedicated provider with a diversified portfolio can ensure shippers have the resources they need even in normal times. </p><p>"We've had a strategy of diversifying our customer base and building density within our network so we can cross utilize our dedicated resources to ebb and flow with different customers' peak seasonal needs or surges," Scollard said. "In the case of the pandemic, we had the grocery sector see incredible surges, and we were able to shift resources from non-essential businesses that didn't need the same level of capacity they once did. That benefits both sides."</p><p>Penske has been conducting modeling to understand how different industries are going to come back, to what degree they're going to come back and when. "We'll be sharing that with our customers for informational purposes," Scollard explained. "We can say, 'The return may look like X for your industry, and it may look like Y for yours.' We are using our resources to develop good information and intelligence for scenario planning." </p><p>As the economy reopens, Scollard said he expects non-essential businesses to start-up in phases. "We can balance the work as we taper down essential businesses that are returning to normal," he said, adding that dedicated fleets can provide stability, which is especially valuable in an uncertain market. </p><h2>Engineering Efficient Routes</h2><p>Networks may not look the same as the economy reopens. "Volumes will not switch overnight," Scollard said. "Where a truck may have been full in the past with five or six stops, today, because volumes are ramping back up, it may take ten stops. There will be a need to re-optimize networks and re-engineer them based on volumes."</p><p>Moreover, products' final destinations may have shifted. "The longer we're in this, the more we're probably going to see channels change. We are already seeing restaurant suppliers looking for new channels to sell their products and the automotive industry making respirators," Scollard said. "We may be going back to more manufacturing in the United States. This could be a really interesting time of completely reinventing supply chains."</p><p><u><a href="http://www.penskelogistics.com/" target="_blank">Penske Logistics</a></u> can provide a high-level review of its customers' shipments and provide detailed data and specific "what-if" insights to help its customers optimize their networks. Scollard said Penske will work with customers as they determine their new normal. "If we work with a customer and have three scenarios of ramp up, that might take three engineering designs to get through each phase. We have the engineering capabilities to get the most efficient model possible."</p><p class="shortcode-media shortcode-media-rebelmouse-image">
<img alt="penske logistics warehouse" class="rm-shortcode" data-rm-shortcode-id="3665c48cd52f05eeb236a946d0019cee" data-rm-shortcode-name="rebelmouse-image" id="7e6ac" type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzE4MDAyMC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTU5MTcxMTEwNn0.hlQpHPzlNFuWzeGySLz-MEUGOox8VyyiB8GY4_pxldM/img.jpg?width=980"/>
</p><h2>Meeting New Requirements<br/></h2><p>An added challenge of operating during the global pandemic has been giving truck drivers the tools they need to stay healthy and comply with local and state requirements for mandatory personal protective equipment, which has been difficult to find due to increased demand. </p><p>"Having a nationwide footprint and operation, we're out front delivering to the hotspots. When we needed masks, we were able to procure those and get them distributed to our operations," Scollard said. "The whole team at Penske has been collaborating to keep our associates healthy, so we can have trucks that are maintained and fueled and drivers to fill those trucks and perform every day."</p><h2>Attracting and Retaining Drivers</h2><p>Truck drivers are still a scarce resource and are in high demand, and Penske devotes significant resources to attracting and retaining drivers. That is especially important given the average age of a driver today. "There is a large population of drivers over 60 out working every day. They might decide they don't want to come back, and that would leave a pretty huge void," Scollard said. </p><p>Additionally, those shippers that aren't coming back online as quickly as others may find their drivers have taken employment elsewhere. Scollard said Penske has continued to focus on its drivers to ensure it has the talent needed to keep trucks moving. </p><h2>Establishing Trust</h2><p> Scollard said Penske's experienced executives are focused on supporting customers. "The pandemic has shown how important it is to have a partner who has your back," he said. "Our team here at Penske has shown we can deliver during the toughest of times. We have the leadership, resources and commitment to do the tough things in business." </p><p>This could be an ideal time for those not using dedicated contract carriage to consider how it could be beneficial. "If you were a business that struggled with your supply chain or distribution network, you might want to think about where you want to make changes," Scollard said. "The new, novel coronavirus has exposed vulnerabilities and identified opportunities for improvement. We're here to help, and we want to help you get back to business."</p><h2>Making the Move to DCC</h2><p>The Guide to Dedicated Contract Carriage, a detailed guide to selecting DCC providers published by Penske Logistics, can help you decide if a dedicated solution is right for you. <u><a href="https://www.penskelogistics.com/solutions/transportation-services/dedicated-contract-carriage/" target="_blank">Download your free copy today.</a></u></p><p style="text-align: right;"><em>By "Move Ahead" Staff</em></p>